ABSTRACT The study seeks to explore entrepreneurial capacity building within the Kingdom of Saudi Arabia by focusing on the subject of the teaching and leading of entrepreneurship within the higher education sector. Specifically, the main purpose of the study is to examine the mainstreaming of the entrepreneurship concept in higher education institutions in the Kingdom. Specifically, the study investigates the extent to which entrepreneurship is taught and practiced in Saudi universities and how universities, through the teaching of entrepreneurship and innovation, can play a role in the fulfilment of the Saudisation policies. These objectives were addressed using qualitative interview data gathered at 18 universities in Saudi Arabia. The interviews involved 70 participants: 43 faculty members, 21 administrators, 2 Ministry of Education staff and 4 entrepreneurs. The data generated from the interviews were analysed by thematic analysis. There orientation of local universities to become entrepreneurial in the Saudi economy is one key education sector policy to bolster economic growth and job creation. The findings reveal that there are no formal policies approved by the Ministry of Education relating to the teaching of entrepreneurship and no systematic gathering of evidence to ascertain the returns obtained from the implementation of entrepreneurship practices. The findings draw attention to calls for universities to operate more independently from the Ministry of Education, the need for mainstreaming the teaching of entrepreneurship through the development of teaching and evaluation mechanisms, and the need to clarify intellectual property law to encourage entrepreneurial practices within Saudi Arabia.